COPPER (JUN) – London Metal Exchange base metal prices continued down trend on Thursday.Chinese copper imports saw a double digit decline Month-on-Month in April, latest data from the General Administration of Customs shows. China accounts for about 40% of global copper consumption. Expected resistance and support level for today trade are as follows:

TREND BEARISH

SUPPORT 1: 429.55

SUPPORT 2: 423.35

RESISTANCE 1: 440.75

RESISTANCE 2: 446.85

CRUDE OIL (MAY) – Contrary to market fears, crude oil is plentiful and prices have been spiking purely because of geopolitical reasons, the Organization of Petroleum Exporting Nations (OPEC) stated in its latest report. Expected resistance and support levels for the crude may contract with expiry date of may 2012 are:

TREND BEARISH

SUPPORT 1: 5075

SUPPORT 2: 4965

RESISTANCE 1: 5295

RESISTANCE 2: 5385

GOLD (JUN) - Gold’s fall to the $1,580-an-ounce level this week seems to have elicited a response from the two key physical markets of India and China. Weakness in the Indian rupee has negative implications for Indian gold demand. The dollar got as high as 53.913 rupees overnight, up nearly 23% since the late-July low. “Further INR weakness, which leads to higher gold prices in local currency terms, may keep interest in Indian gold jewelry at bay. Resistance and support levels for the today’s session for Gold JUN contract which will expire in JUN 2012 are:

TREND BEARISH

SUPPORT 1: 28275

SUPPORT 2: 28065

RESISTANCE 1: 28595

RESISTANCE 2: 28685

SILVER (JUL) – The increasing industrial use of silver will help the metal outperform gold when it comes to precious metal investments, as the supply/demand fundamentals point to a continued scarcity of silver and ensure a shortage of supply in future which will end in the higher silver bullion prices, Silver is Expected resistance and support levels for today trade are as follows:

We expect a lower start today as well owing to weak Asian markets. The US dollar is strong while crude and gold are in the red.

Most market participants appear to be miserable despite the best efforts of the Government (GAAR deferred by a year) and the RBI (to lift the rupee). Political uncertainty in the debt-stricken eurozone has added to the gloom. The result: key indices are down for three straight sessions and remain below 200-DMA. The rupee has recovered a wee bit but continues to be under pressure. FIIs too remain wary of putting fresh money given the concerns on tax laws and macro-economic issues. The only positive to have emerged in recent past is the drop in crude oil. Here too, there is no certainty that the current trend will prevail in the near-term.

US blue chip and broader indices gained overnight but the Nasdaq was flat. Sentiment on Wall Street was marred a by major credit loss at JP Morgan and Cisco’s cautious outlook. European benchmarks ended higher though.

The IIP data for March 2012 will be important after the Government shockingly slashed January’s figures. Latest inflation report is due on Monday.

The Nifty sustained below the psychological support of 5000 for the second consecutive trading session on Thursday. There was no respite from volatility despite the main indices trading in oversold terrain. The current downtrend could worsen if the Nifty breaks below 4925.Meanwhile, the Government has deferred long pending legislations related to Insurance and Coalwhile clearing the MFI Bill.There is no end to the ruckus in parliament as UPA and principal opposition party spar over the issue of corruption in high places.SKS Microfinance will be in focus as the Cabinet has cleared the MFI Bill.